Judge biding time as season nears

by Carrie Watters - Sept. 2, 2009 07:47 PMThe Arizona Republic

If the Coyotes bankruptcy was a hockey game, it would fast be approaching overtime.

No decisive scoring came Wednesday in U.S Bankruptcy Court. But all the big players were there including Gary Bettman, commissioner of the NHL, which last week filed its own $140 million bid to buy the team, and Jim Balsillie, the Canadian who has offered $212.5 million if he can move the team to Hamilton, Ontario.

Judge Redfield T. Baum, overseeing the 4-month-old bankruptcy, asked pointed questions of both sides in his affable manner, but appeared disinclined to rush into ruling ahead of the Sept. 10 auction.

A few key issues were before Baum on Wednesday: Whether Balsillie can become an owner, and the Coyotes be relocated, against the league's wishes, as well as an NHL request that he rule, no matter the outcome of the auction, that the team could not leave for the 2009-10 season.

The first preseason game is Sept. 15. The regular season opens Oct. 3.

The judge agreed that relocation would be tough, especially considering that the league has made it clear it would seek an appeal and stay on the move if Balsillie's bid wins.

That could leave Balsillie trying to move the team mid-season, something the NHL says has never happened.

The league maintains a move this season is impossible with issues such as arena and broadcast schedules. Not to mention players who would have to juggle the last-minute move.

"You have to acknowledge there's some legitimacy to what they say," Baum told Balsillie's attorneys.

The broader issue argued on Wednesday is whether the judge is willing to make an unprecedented move and overturn a professional sports league's rejection of an owner.

NHL owners in July unanimously rejected Balsillie, citing concerns about his character after he walked away from a deal to buy the Pittsburgh Penguins in 2006, and tangled with the league a year later when he tried to move the Nashville Predators to Hamilton.

Balsillie's legal team says the NHL's reasons are a cover up and its real motive is to protect the territorial rights of the Toronto Maple Leafs.

His attorneys say that the NHL is using the character issue to shield against anti-trust claims, which would be sparked by the NHL Constitution, which gives teams veto power over another team moving into its market.

In effort to gauge the good faith of the league's decision, Baum has requested complete transcripts of testimony all parties have taken during the case.

After the hearing, Balsillie told the media that his bid "is by far the best for creditors, the fans and for the team."

And Bettman remained determined. "There's nothing more important to a sports league than who owns its teams and where it plays . . . You've got to do what it takes to protect that."